Balanced outcome supports safe operations,
infrastructure improvements, sustainability and enhanced customer
experience
MERRILLVILLE, Ind., Aug. 2, 2023
/PRNewswire/ -- Northern Indiana Public Service Company LLC
(NIPSCO) received a decision from the Indiana Utility Regulatory
Commission (IURC) to adjust its electric rates, effective
August 2023. The newly approved rates
will be phased in over a multi-step process to spread out the
changes to customer bills beginning in August 2023, with the remaining changes applied
in 2024.
"Customers expect safe, dependable electric service at the
lowest cost possible," said Mike
Hooper, NIPSCO president. "This decision balances new rates
in a way that allows NIPSCO to continue making the necessary
investments in our infrastructure and technology to serve
customers. Meanwhile, this outcome also supports safety,
reliability and sustainability, with a significant portion of the
investments tied to our energy transition and the addition of new
renewable energy projects located in Indiana – which are already providing direct
economic benefits to our customers and communities."
NIPSCO is transitioning to a more balanced energy portfolio. The
transition includes renewable energy sources – which are
operational and serving customers well – representing more than
$800 million in new investments
through 2023. In turn, customers benefit by receiving all of the
revenue when excess power is generated and sold into the market.
Since 2021, more than $60 million in
credits has gone back to customers associated with excess power and
renewable energy credit sales from the company's new renewable
and existing generating units.
The newly approved rates also support the company's investment
of approximately $700 million in
electric transmission and distribution system upgrades, technology
improvements, and safety and reliability initiatives to be
completed by the end of 2023, with plans for similar investments
into the future.
How will residential customer bills
change?
As a regulated energy provider, NIPSCO cannot change any rates or
charges to its customers without the approval of the IURC. NIPSCO's
natural gas rates are not affected by this request.
The IURC decision follows a nearly year-long, extensive review
process including public input and collaborative agreement reached
with the Indiana Office of Utility Consumer Counselor (OUCC) and
the NIPSCO Industrial Group.
Based on a review of the IURC's decision, the average
residential electric customer using 668 kilowatt hours (kwh) per
month will see an overall increase of approximately $12 per month (or 10 percent), with the
change being phased in over multiple steps beginning in
August 2023 and into 2024. This
change is lower than the initial proposed monthly increase of
approximately $19 per month, or 16.5
percent.
As the company retires its remaining coal-fired generation by
2028, the costs associated with operating and maintaining those
facilities will be reduced and eventually eliminated. Included in
today's decision is a component that ensures customers are only
paying costs as NIPSCO incurs them, providing a more real-time
benefit to customers.
Actual projected bill impacts may vary by customer – including
non-residential customers – depending on usage and future potential
changes in market prices for commodities like coal.
Additional Customer Benefits:
There are other customer benefits associated with this change,
including:
- Continued investments to protect the electric grid against
cybersecurity threats
- A broad range of system upgrades to increase reliability
- Modernization of the electric grid with automated technology
that pinpoints problems and allows us to make repairs more
efficiently
- Enhanced overall customer experience through the introduction
of new products and services. Examples of recent enhancements
include a mobile app, along with the ability for customers to
connect with customer care agents online via live or automated
chat, the continuation of energy efficiency programs and more
- NIPSCO funding assistance to Community Action Programs to
enable health and safety work for the low-income weatherization
program.
Bill payment assistance and energy savings programs are
available
As the current economic effects of inflation and other rising
costs are being experienced, it's important to know that help
continues to be available. Bill payment assistance programs are
available for customers experiencing financial difficulties –
including those who are most vulnerable.
Beyond the existing state and federal energy assistance programs
and moratorium on winter service disconnections, NIPSCO provides,
credit arrangements, budget plans and reduced deposits for eligible
customers, including:
- Payment Agreements: NIPSCO has expanded its payment plan
agreements to offer its most flexible payment plans to customers
that need financial support, including three-, six- and 12-month
plans. Customers can learn more and enroll at
NIPSCO.com/PaymentPlans.
- LIHEAP Program: LIHEAP support is available to
households that are at or below 60 percent of State Median Income
(SMI). The program opens on October 2
for online and mail-in applications. Customers can learn more and
find out if they qualify at eap.ihcda.in.gov or by calling
2-1-1.
- Township Trustees: A limited amount of energy assistance
funds are available through local Township Trustee offices. NIPSCO
customers are encouraged to contact their local Township Trustee to
see what help may be available.
- The Emergency Rental Assistance Program (IERA): Provides
up to 18 months of rental and utility assistance for renters.
Additional information can be found at
https://www.in.gov/ihcda/homeowners-and-renters/rental-assistance/.
As always, any customers experiencing difficulty with paying
their bill – regardless of their income – are encouraged to contact
our Customer Care Center Monday through Friday between 7 a.m. and 7 p.m. CT at 1-800-464-7726 to
determine what help might be available to them. For more
information on bill assistance, customers can visit
NIPSCO.com/FinancialSupport.
In addition to offering a variety of payment assistance options,
NIPSCO offers a number of energy efficiency programs to help lower
energy usage and bills. Visit NIPSCO.com/Save for more information
on available programs and other ways to save.
Learn more about NIPSCO's rates at
NIPSCO.com/2023electricrates.
About NIPSCO: Northern Indiana Public Service Company
LLC (NIPSCO), with headquarters in Merrillville, Indiana, has proudly served the
energy needs of northern Indiana
for more than 100 years. As Indiana's largest natural gas distribution
company and the second-largest electric distribution company,
NIPSCO serves approximately 850,000 natural gas and 483,000
electric customers across 32 counties. NIPSCO is part of NiSource's
(NYSE: NI) six regulated utility companies. NiSource is one of the
largest fully regulated utility companies in the United States, serving approximately 3.7
million natural gas and electric customers through its local
Columbia Gas and NIPSCO brands. More information about NIPSCO and
NiSource is available at NIPSCO.com and NiSource.com.
About NiSource
NiSource Inc. (NYSE: NI) is
one of the largest fully-regulated utility companies in
the United States, serving
approximately 3.3 million natural gas customers and 500,000
electric customers across six states through its local Columbia Gas
and NIPSCO brands. The mission of our approximately 7,200 employees
is to deliver safe, reliable energy that drives value to our
customers. NiSource is a member of the Dow Jones Sustainability -
North America Index and is on Forbes lists of America's Best
Employers for Women and Diversity. Learn more about NiSource's
record of leadership in sustainability, investments in the
communities it serves and how we live our vision to be an
innovative and trusted energy partner at www.NiSource.com.
NI-F
The content of our website is not incorporated by reference
into this document or any other report or document NiSource files
with the Securities and Exchange Commission.
Forward-Looking Statements
This press release contains
"forward-looking statements," within the meaning of Section 27A of
the Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Investors and prospective investors should
understand that many factors govern whether any forward-looking
statement contained herein will be or can be realized. Any one of
those factors could cause actual results to differ materially from
those projected. These forward-looking statements include, but are
not limited to, statements concerning our plans, strategies,
objectives, expected performance, expenditures, recovery of
expenditures through rates, stated on either a consolidated or
segment basis, and any and all underlying assumptions and other
statements that are other than statements of historical fact.
Expressions of future goals and expectations and similar
expressions, including "may," "will," "should," "could," "would,"
"aims," "seeks," "expects," "plans," "anticipates," "intends,"
"believes," "estimates," "predicts," "potential," "targets,"
"forecast," and "continue," reflecting something other than
historical fact are intended to identify forward-looking
statements. All forward-looking statements are based on assumptions
that management believes to be reasonable; however, there can be no
assurance that actual results will not differ materially.
Factors that could cause actual results to differ materially
from the projections, forecasts, estimates and expectations
discussed in this release include, among other things, our ability
to execute our business plan or growth strategy, including utility
infrastructure investments; potential incidents and other operating
risks associated with our business; our ability to adapt to, and
manage costs related to, advances in, or failures of, technology;
impacts related to our aging infrastructure; our ability to obtain
sufficient insurance coverage and whether such coverage will
protect us against significant losses; the success of our electric
generation strategy; construction risks and natural gas costs and
supply risks; fluctuations in demand from residential and
commercial customers; fluctuations in the price of energy
commodities and related transportation costs or an inability to
obtain an adequate, reliable and cost-effective fuel supply to meet
customer demands; the attraction and retention of a qualified,
diverse workforce and ability to maintain good labor relations; our
ability to manage new initiatives and organizational changes; the
actions of activist stockholders; the performance of third-party
suppliers and service providers; potential cybersecurity attacks;
increased requirements and costs related to cybersecurity; any
damage to our reputation; any remaining liabilities or impact
related to the sale of the Massachusetts Business; the impacts of
natural disasters, potential terrorist attacks or other
catastrophic events; the physical impacts of climate change and the
transition to a lower carbon future; our ability to manage the
financial and operational risks related to achieving our carbon
emission reduction goals, including our Net Zero Goal; our debt
obligations; any changes to our credit rating or the credit rating
of certain of our subsidiaries; any adverse effects related to our
equity units; adverse economic and capital market conditions or
increases in interest rates; inflation; recessions; economic
regulation and the impact of regulatory rate reviews; our ability
to obtain expected financial or regulatory outcomes; continuing and
potential future impacts from the COVID-19 pandemic; economic
conditions in certain industries; the reliability of customers and
suppliers to fulfill their payment and contractual obligations; the
ability of our subsidiaries to generate cash; pension funding
obligations; potential impairments of goodwill; the outcome of
legal and regulatory proceedings, investigations, incidents, claims
and litigation; potential remaining liabilities related to the
Greater Lawrence Incident; compliance with applicable laws,
regulations and tariffs; compliance with environmental laws and the
costs of associated liabilities; changes in taxation; and other
matters set forth in Item 1, "Business," Item 1A, "Risk Factors"
and Part II, Item 7, "Management's Discussion and Analysis of
Financial Condition and Results of Operations," of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2022 and our Quarterly Reports on
Form 10-Q for the quarters ended March 31,
2023 and June 30, 2023, some
of which risks are beyond our control. In addition, the relative
contributions to profitability by each business segment, and the
assumptions underlying the forward-looking statements relating
thereto, may change over time.
All forward-looking statements are expressly qualified in their
entirety by the foregoing cautionary statements. We undertake no
obligation to, and expressly disclaim any such obligation to,
update or revise any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events
or changes to the future results over time or otherwise, except as
required by law.
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SOURCE NiSource Inc.